Do i need an accountant for the whole year? (as a limited company)

Owl · 22nd July 2008, 20:12

Hi all,

Ive just paid an accountant to set my limited company up. Its my first time contracting and they have done the paperwork and charged me £150. I am happy with this but they have said they want me to sign up to 1 yr of payments.

Strangely enough! Im an accountant myself and im hoping i can do the monthly things myself, i just think ill need a bit of help with VAT and 1st year year end accounts.

Should i sign up for this year or is it better to pay when i need help? Ive read a few threads here and people seem mixed in their views.

Any advice would be greatly appreciated!

QwertyBerty · 23rd July 2008, 07:20

Running the ltd co on a monthly basis is easy... just use the HMRC CD software to handle PAYE. The tricky bit is preparing the year end accounts (BS, P&L, etc) but as you're an accountant I can't see why that should be too difficult.

QB.

NotAllThere · 23rd July 2008, 07:49

And VAT is very easy. Even I can do that! In your case, I'd pay someone (freelancer experienced) on an ad-hoc basis as and when you need them.

I consider that £150 to set up a company is rather on the high side.

Owl · 23rd July 2008, 13:06

Hi,

I just spoke to my accountant and he said he isnt looking to take on clients on an as/when basis and that i need to pay an extra £100 to cover existing costs!

Im so annoyed and even if i was more inclined to do the monthly thing, ive now been put off by him trying to persuade me heavily otherwise. As it's a relative of a friend, i feel quite bad to make a huge fuss!

I asked him about IR35 and he said although they will look over it - they arent experts in it. My issue is i dont know what service ill get for my monthly payments! He says they will be proactive about things......

Just1morethen · 24th July 2008, 08:53

Understandably accountants prefer client who pay monthly as it assists cash flow, improves lock-in, and helps with work flow planning. Its also easier to keep clients informed and on the straight-and-narrow if we are in regulat contact and seeing their paperwork regularly. Its certainly our preferred way and over 90% of our contractor clients do this.

We do have year-end only clients and they get exactly the same service on an ad-hoc basis but it can be difficult to be proactive when all the info isn't in. IMHO a year-end only service can work for seasoned contractors who know a bit about accounts, taxation, dividends etc. Newbies should stick to a monthly service.

Caveat: I'm an accountant so this post may not be strictly unbiased.

Sausage Surprise · 24th July 2008, 10:42

£150

Why don't you use one of the specialist accountants recommended on here?

NotAllThere · 24th July 2008, 11:43

Quote:

Originally Posted by Owl

...I asked him about IR35 and he said although they will look over it - they arent experts in it...

Get a different accountant. And get one who charges for actual work done. They're not that rare, even in the UK.

In my business, I only charge for the work I do. Sure, I'd love a monthly fee just to be available...